What Is The Memorandum Of Agreement

Sometimes donors, in trying to promote cooperation, require agreements with certain agencies or organizations submitted with funding proposals. These agreements generally specify the obligation for the signatory to cooperate with the organization that, in a certain way, solicits funding – participant, receive recommendations or, for example, carry out activities on an advisory board. This may include some of the activities described above, but may also result in a more formal agreement to combine certain elements of your organizations or collaborate specifically. Some changes can be incorporated into the treaty. If you trust the contractor as an expert in the field in which they work, you can indicate that they can define the best way to conclude the terms of the contract and that they can change that course if they see a reason why their original plan is probably not successful. They can allow a contractor to get money in any way he sees fit, as long as the money is destined for the activity of the contract. Treaties must be aware of what happens in such situations. In this way, everyone knows in advance what the consequences are, and if the worst happens and you end up in court, the law will be clear. Two organizations can sign a Memorandum of Understanding to cooperate on a program. One of them spends money on the basis of their agreement to set up the program and the other – without whose participation the program cannot work – turns around. The first organization may then be required to repay the grant allowance, since it was spent on a program that never took place. In this case, although there was no contract or exchange in the original agreement, the law could force the second organization to reimburse the first organization…

or maybe not. It would depend on the circumstances and the opinion of the judge – so it is a grey area. As a general rule, you won`t go wrong by being too detailed. The trick is not to limit the activity so that no innovation or flexibility is possible. The contract should not be seen as a micro-management opportunity, but should at the same time be specific enough for all parties to do what they should do and for each party to have a conscience if there is a problem. A Memorandum of Understanding is legally unenforceable, but it describes the terms of an agreement between or between two or more parties to cooperate or cooperate in one way or another.

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